Prosecutors Conduct Search and Seizure at Wemade Headquarters on Charges of Fraud, Breach of Trust, and Embezzlement

The prosecution conducted a search and seizure operation on Wemade, the issuer of the cryptocurrency WEMIX. It is known that an investigation has been launched regarding allegations of fraud, breach of trust, and embezzlement involving Wemade and its CEO Jang Hyun-guk.

On the 30th, the Financial Investigation Division 1 of the Seoul Southern District Prosecutors' Office (acting chief prosecutor Chae Hee-man) announced that they have been conducting a search and seizure at Wemade's headquarters in Sampyeong-dong, Bundang-gu, Seongnam-si, Gyeonggi Province since the morning.

On the 12th of last month, WEMIX investors filed a complaint with the Seoul Southern District Prosecutors' Office against Wemade and CEO Jang, accusing them of fraud, breach of trust, and embezzlement. Wemade was embroiled in a false disclosure controversy last year. They released WEMIX tokens into the market by providing them as collateral but failed to disclose this. It is known that 35.8 million WEMIX tokens were entrusted to the collateral-type stablecoin platform "Cocoa Finance." This accounts for about 30% of the existing circulating supply of WEMIX.

At that time, domestic cryptocurrency exchanges Upbit, Bithumb, Coinone, and Korbit decided to delist WEMIX due to the false disclosure. Wemade filed for an injunction to suspend the effect of the delisting, but the court dismissed the request.

In February of this year, Coinone judged that the circulation issue had been resolved and decided to relist WEMIX.

This content was produced with the assistance of AI translation services.